NTPC has executed share purchase agreement for acquisition of the North Eastern Electric Power Corporation (NEEPCO) and THDC India (THDCIL).
The company has executed the agreement with the President of India for acquisition of legal and beneficial ownership of 3,60,98,09,800 equity shares held by the President of India in NEEPCO and the acquisition of beneficial ownership in 600 equity shares held by the nominees of the President of India in NEEPCO, collectively representing 100 percent of the total paid up share capital of NEEPCO.
The acquisition has been made for a consideration of Rs 4,000 crore and is subject to satisfaction of customary conditions precedent.
The company also executed another agreement with the President of India for acquisition of legal and beneficial ownership of 2,73,09,406 equity shares held by the President of India in THDCIL and the acquisition of beneficial ownership in six equity shares held by the nominees of the President of India in THDCIL, collectively representing 74.496 percent of the total paid-up share capital of THDCIL.
The acquisition has been made for a consideration of Rs 7,500 crore. The acquisition is subject to satisfaction of customary conditions precedent.
The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 21 November 2019 had granted an in-principle approval to the proposal of the Department of Investment and Public Asset Management, Ministry of Finance, Government of India, for strategic disinvestment of Government of India’s shareholding in NEEPCO to NTPC along with transfer of management control.
The takeover of NEEPCO will not only give a foothold to NTPC in the northeastern regions but also help unlock potential synergies with many of its existing projects.
NEEPCO has operational portfolio of 1,457 MW comprising hydro power generation capacity of 925 MW, gas-based generation capacity of 527 MW and solar generation capacity of five MW. Additionally, 600 MW Kameng Hydro Electric Project is likely to be commissioned soon.
THDCIL is primarily engaged in the business of development of conventional/non-conventional/ renewable sources of energy and river valley projects.
THDCIL has operational portfolio of 1,513 MW comprising hydro power generation portfolio of 1,400 MW and wind power generation portfolio of 113 MW. Moreover, it has projects with aggregate capacity of 2,838 MW (1,468 MW are hydro power projects, 50 MW are solar power project and 1,320 are thermal power project) under various stages of implementation.